The Association of British Insurers has launched a new initiative that will recognise good Health & ...
The Association of British Insurers has launched a new initiative that will recognise good Health & Safety standards, in the hope that it will give businesses greater access to the employers' liability insurance market.
Making the Market Work will improve the operation of the EL insurance market, says the ABI, and will certainly come as a helping hand for both insurers and businesses as they have lately faced rising costs and higher premiums respectively.
During the period between 1996 and 2002 alone, claims costs have risen threefold.
Under the new initiative trade associations or other similar bodies can submit details of their health and safety schemes to an ABI joint standing committee. Their practises will then be assessed against 'best practice' features - which works as a kind of "benchmark" - that insurers want to see in place, the ABI says.
However, there no such a thing as 'pass' or 'fail', says Malcolm Tarling, spokesman for the ABI, and adds that the committee will only report back to the trade association with any suggested improvements.
After that, the information will be sent out to all ABI members writing EL insurance and insurers will be able to take use this information when assessing the risk from firms who belong to the particular trade association or body's health and safety scheme.
This will help insurance companies receive more accurate information, Tarling adds.
John Parker, the ABI's head of general insurance, says that the initiative is good for both businesses and insurers.
"Everyone will benefit through a better flow of information. Businesses will understand the health and safety practices insurers are looking for, while insurers will be able to reflect good health and safety in the terms they can offer."
"Hopefully, we will also see rising standards of health and safety across the small business sector," he adds.
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